Add UMG's challenge

LIKELY A VIRGIN: The shedding of Virgin Records looked certain in addition to other wholly owned EMI assets, as well as the company's deals to license and distribute some indie labels, people familiar with the matter told the WSJ. Ensign, Chrysalis and Mute were also singled out as likely candidates. The assets proposed for sale generate between a third and a half of EMI's European revenue. But with the exception of Virgin, most of the assets to be sold are catalogs of older recorded music, not labels with active artist rosters. In the case of Virgin, current roster acts will reportedly be offered the option of staying with UMG-EMI or going with Virgin and its founder, Richard Branson. The biggest artists, including Katy Perry, whose music is distributed outside the U.S. by Virgin, are expected to stay with Universal. (7/19a)